Goldman Sachs initiates MeiraGTx stock coverage with neutral rating

Goldman Sachs has started covering MeiraGTx Holdings plc (NASDAQ:MGTX) with a Neutral rating and a price target of $16.00. The stock is currently trading at $11.75, indicating a potential upside of approximately 36% from the current price. However, shares have slipped about 10% over the past week. Analysts have a range of price targets for the stock, from $19 on the low end to $50 on the high end.

MeiraGTx is a clinical-stage company developing gene therapies for inherited retinal diseases, radiation-induced dry mouth, and Parkinson's disease. Its lead asset, bota-vec, targets X-linked retinitis pigmentosa, while its partnered AAV-AIPL1 addresses LCA4 congenital blindness. Regulators are working on approval for both programs.

The company's AAV2-hAQP1 program for radiation-induced xerostomia is expected to provide Phase 2 AQUAx2 data in the second quarter of 2027. MeiraGTx is also planning a Phase 3 AAV-GAD trial for Parkinson's disease in collaboration with Reogen. Analysts predict the company will be profitable this year, with a financial health score of 3.3.

Investors can find additional insights from InvestingPro, which offers 11 exclusive tips on MGTX. The firm is closely monitoring the development of the Riboswitch gene regulation platform, designed to control protein expression with precision using small molecule inducers. MeiraGTx has also secured a substantial investment agreement with Oberland Capital Management, potentially totaling $400 million.

This investment includes up to $375 million in non-dilutive capital through capped royalty payments on certain products and up to $25 million in equity. The company will pay low single-digit capped royalties on net sales of therapies after regulatory approval. Raymond James continues to rate MeiraGTx as a Strong Buy, emphasizing the significance of Beacon Therapeutics' data for similar gene therapies.

H.C. Wainwright has maintained a Buy rating and set a price target of $20, highlighting the company's focus on key therapies for specific conditions. These recent developments showcase MeiraGTx's strategic and financial moves within the gene therapy industry.